Today, we bring you a couple of news items from the trade press. To us, they indicate high levels of activity and preparation for vigorous business activity in a world that re-emerges into a new version of normality, now we can look forward to control and perhaps even the extinction of Covid-19.
The hire is reportedly in preparation for Bud scaling up its commercial operations in 2021, with Barker supporting the teams which look after the fintech’s customers.
“One of the holes that a lot of technology providers fall into is they focus very inwardly on the technology,” Barker told AltFi when asked about his decision to join Bud.
“I think what Ed and George have is an appreciation that it’s all about the customer experience and trying to find new ways to use this transactional data and these new capabilities to materially step forward.”
“That’s very appealing to me.”
Earlier this year the fintech also launched open banking payments, with Blockchain.com as its launch customer for these payments which are more simple and faster to initiate than traditional bank transfers.
In a latest development, UK challenger bank Monzo has quietly secured £60 million in funding from new investors including Deliveroo and Stripe investor Novator, Kaiser, and TED Global, as well as existing investor Goodwater.
Historical Performance And IFISA Process Guide
That figure is the result of over £20 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.